The Collin County Observer

Frustrated over lack of access to computer systems, the County Auditor appeals to the Texas Attorney General.

There's been a long running turf battle at the county courthouse over the extent of authority of the County Auditor.

The County Auditor serves a role almost unique in county government. He and his department are paid out of the general fund controlled by the Commissioners Court, but he is hired and his pay is set by a committee of the elected District Judges.

"May permission to provide the County auditor with access to any data and/or tables used to create or support financial transactions... be arbitrarily withheld?"
County Auditor Don Cozad

It is the Judges who do all salary reviews, hiring and firing and who set the auditor's staff and budget. These laws are designed so that the Auditor is independent and above the political fray.

Our commissioners have never liked "independent". They look with suspicion on any county operation not under their own direct control. A good example of this tension was evident at a commissioners court meeting a few weeks ago when Commissioner Phyllis Cole attempted to chastise County Auditor Donald Cozad for noting in a report that the light switches weren't working at the animal shelter. Cozad had listed the broken switches as a safety hazard, Cole emphasized that lighting was not in the Auditor's purview.

"The conversion has severely limited the ability of the County Auditor to audit the payroll financial transactions; in addition access has been denied to confirm the system configuration, system rules....etc."
County Auditor Don Cozad

The real battle however is over computerized financial systems. Cozad has long wanted to employ an IT auditor to review the programs, systems, security and backup of the county's varied computer systems.

As the county has grown, it has begun supplementing its financial reporting system with "stand alone" software packages that are under the control of individual department heads. These systems, such as the HR department's, PeopleSoft program and the Tax Assessor's RT Lawrence Remittance System send only final reports to the central financial reporting software package. The auditor wants to be able to look at these stand alone systems to verify that they have not been tampered with and are reporting accurately.

Last week, Cozad finally appealed to a higher authority - he asked the Texas Attorney General to rule on the dispute. Cozad's request for an Attorney General's Opinion lists 9 questions that clearly illustrate his frustration with the county and Commissioners Court.

Cozad's request for an Attorney General's Opinion.(click on image to view the complete request)

In his request, Cozad asks, "May the county Auditor examine and audit any computer system (hardware and/or software) that affects, generates, contains or reports on financial records?

"May the County Auditor examine and audit the records (both paper and electronic) of administrative or elective offices?"

He also asks, "May permission to provide the County Auditor with only view only access to internal controls within a system or use of monitor software that reports changes be arbitrarily withheld?

"May permission to provide the County auditor with access to any data and/or tables used to create or support financial transactions... be arbitrarily withheld?"

Cozad directly complains about procedures used with the new PeopleSoft system. He wrote in his request, "Until late December of 2006, the County Auditor had full access to the payroll system....In December of 2006, the County converted to a new HR/PR [PeopleSoft] system that is not integrated with the financial [reporting] system. The conversion has severely limited the ability of the County Auditor to audit the payroll financial transactions; in addition access has been denied to confirm the system configuration, system rules....etc."

Mr. Cozad had asked District Attorney John Roach to rule on these matters, but Roach declined, in part because, as he wrote, "all these defects or problems could be remedied by your request for an opinion from the Texas Attorney General".

In his arguments for asking for the greater access, Cozad mentions that modern auditing methods, and federal law have evolved, especially since Enron and other financial scandals have pointed to the need for effective examination of all paper and electronic financial systems.

This battle by Mr. Cozad will have, and should have, far-reaching implications as to how local governments are administered. The taxpayers are entitled to know, beyond a reasonable doubt, that all their money has been protected, and that there is true, independent verification of all financial dealings.

This week we've learned that the County Tax Assessor hired a convicted thief (who stole from her previous job in a county tax office) and that the county won't let the auditor look at the systems that are behind the financial reports.

The county commissioners court and the district judges had better resolve this issue before they begin to look like the "Enron on McDonald Street".

Bill

Note: The Commissioners Court will meet this Tuesday, April 29 at 1:30 P.M.

The discussion of the Auditor's Request for an Attorney General's Opinion is agenda item #13. The Court does allow public comment on any agenda item, simply fill out a card before the meeting to request your right to speak on agenda item #13.

The meeting is on the 6th Floor of the Collin County Courthouse at 210 S. McDonald St. in McKinney